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250820.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, August 19, 2025, Vol. 26, No. 165 Headlines A Z E R B A I J A N AZERBAIJAN BUSINESS: S&P Raises Long-Term ICR 'BB', Outlook Stable B E L A R U S BELARUSBANK: S&P Withdraws 'CCC/C' Issuer Credit Ratings G E R M A N Y SC GERMANY 2023-1: DBRS Confirms BB(high) Rating on F Notes I R E L A N D ANCHORAGE CAPITAL 2: S&P Assigns B- (sf) Rating to Class F-R Notes ARINI EUROPEAN VI: S&P Assigns B- (sf) Rating to Class F Notes CVC CORDATUS V: Fitch Assigns 'B-sf' Final Rating to Cl. F-R Notes CVC CORDATUS XXVIII: S&P Assigns B- (sf) Rating to Cl. F-R Notes DILOSK RMBS 7: DBRS Confirms BB Rating on Class E Notes GROSVENOR PLACE 2025-3: S&P Assigns B-(sf) Rating to Class F Notes MADISON PARK XV: Fitch Assigns B-sf Final Rating to Cl. F-R-R Notes NEUBERGER BERMAN 7: Fitch Assigns B-sf Final Rating to Cl. F Notes K A Z A K H S T A N PRIVATE COMPANY: Fitch Affirms 'BB' Long-Term IDR, Outlook Stable P O R T U G A L TAGUS: DBRS Confirms B Rating on Class E Notes R U S S I A TAJIKISTAN: S&P Affirms 'B/B' Sovereign Credit Ratings T U R K E Y FLO MAGAZACILIK: Moody's Withdraws 'B2' Corporate Family Rating U N I T E D K I N G D O M CAISTER FINANCE: S&P Assigns B- (sf) Rating on Class F Notes DIGNITY FINANCE: S&P Raises Class B Notes Rating to 'CCC+ (sf)' - - - - - =================== A Z E R B A I J A N =================== AZERBAIJAN BUSINESS: S&P Raises Long-Term ICR 'BB', Outlook Stable ------------------------------------------------------------------ S&P Global Ratings raised its long-term issuer credit rating on Azerbaijan Business Development Fund (ABDF) to 'BB' from 'BB-'. The outlook is stable. S&P also affirmed its 'B' short-term rating on ABDF. On Jan. 1, 2025, Entrepreneurship Development Fund (EDF) and Azerbaijan Investment Company (AIC) merged to form Azerbaijan Business Development Fund (ABDF) under the Ministry of Economy. In late 2024, EDF wrote off most of its legacy problem loans, materially improving the combined entity's risk profile. ABDF was established through the legal merger of EDF and AIC under the Ministry of Economy on Jan. 1, 2025. The two entities are currently undergoing operational integration. The formation of the management board for the combined entity is expected to be finalized by year-end 2025. At mid-year 2025, EDF's assets amounted to Azerbaijani new manat (AZN) 1.05 billion (about $615 million), while AIC's assets totaled AZN374 million (about $220 million). Both entities support entrepreneurship and economic diversification in Azerbaijan: EDF channels government financing at subsidized rates to entrepreneurs through banks, and AIC takes minority stakes in companies that produce export-oriented and import-substitution products in non-oil-and-gas-related industries. In late 2024 EDF wrote off AZN192 million in fully provisioned Stage 3 loans to financial institutions that had their licenses withdrawn between 2016-2020. Thus, by mid-year 2025 its Stage 3 loans declined to AZN9.7 million, accounting for 1.4% of total loans, from 24% at year-end 2023. This compares favorably to S&P's current estimate of Stage 3 loans making up 5%-6% in the Azerbaijan banking sector. Loans disbursed by EDF over the past five years have demonstrated relatively sound credit quality, with a limited number of nonperforming loans. Provisions were 3% of total loans at year-end 2024 and covered Stage 3 loans by 2x. S&P said, "We note that AIC's legacy primary activity of taking equity stakes in local businesses has an inherently higher risk profile than EDF's portfolio of loans to local banks for on-lending to small and midsize enterprises. That said, we expect the combined entity's capitalization (as measured by our RAC ratio) to remain very strong and supportive of the upgrade. We expect ABDF to publish consolidated audited IFRS financials for 2025 in June 2026. "The stable outlook reflects our expectation that over the next 12 months both entities will progress with their operational integration, and ABDF will maintain its very strong capitalization and contained risk appetite. "We could consider lowering ABDF's rating if the operational integration of both entities encounters difficulties and/or the fund increases its risk profile post-merger and accumulates material debt. "We consider an upgrade over the next 12 months unlikely. Over the longer term, an upgrade would depend on ABDF demonstrating a consistent record of increasing relevance and importance in its public policy role, as well as a higher sovereign rating on Azerbaijan." ============= B E L A R U S ============= BELARUSBANK: S&P Withdraws 'CCC/C' Issuer Credit Ratings -------------------------------------------------------- S&P Global Ratings withdrew its 'CCC/C' long- and short-term issuer credit ratings on two Belarus financial institutions. The withdrawal follows the EU Council Decision 2025/1471, of July 18, 2025, which amended Decision 2012/642/CFSP of Oct. 15, 2012, concerning sanctions on Belarus. The banks affected are: -- Belagrorpombank JSC; and -- JSC Savings Bank Belarusbank. ============= G E R M A N Y ============= SC GERMANY 2023-1: DBRS Confirms BB(high) Rating on F Notes ----------------------------------------------------------- DBRS Ratings GmbH confirmed its credit ratings on the notes (collectively, the Notes) issued by SC Germany S.A., acting on behalf and for the account of its Compartment Consumer 2023-1 (the Issuer) as follows: -- Class A Notes at AAA (sf) -- Class B Notes at AA (sf) -- Class C Notes at A (high) (sf) -- Class D Notes at A (low) (sf) -- Class E Notes at BBB (low) (sf) -- Class F Notes at BB (high) (sf) The credit rating on the Class A Notes addresses the timely payment of scheduled interest and the ultimate repayment of principal by the legal final maturity date. The credit ratings on the Class B Notes, Class C Notes, Class D Notes, and Class E Notes address the ultimate payment of interest, the timely payment of interest when most senior, and the ultimate repayment of principal by the legal final maturity date. The credit rating on the Class F Notes addresses the ultimate payment of interest and the ultimate repayment of principal by the legal final maturity date. CREDIT RATING RATIONALE The credit rating actions follow an annual review of the transaction and are based on the following analytical considerations: -- Portfolio performance, in terms of delinquencies, defaults, and losses, as of the July 2025 payment date; -- Probability of default (PD), loss given default (LGD), and expected loss assumptions on the remaining receivables; and -- Current available credit enhancement to the Notes to cover the expected losses at their respective credit rating levels. The transaction is a securitization collateralized by a portfolio of fixed-rate unsecured amortizing personal loans granted without a specific purpose to private individuals domiciled in Germany and serviced by Santander Consumer Bank AG (SCB; the originator, seller, and servicer). The transaction closed in August 2023 with an initial portfolio of EUR 800 million and included an initial 12- month revolving period, which ended on the August 2024 payment date. Following the end of the revolving period, the Class A, Class B, Class C, Class D and Class E Notes started amortizing on a pro rata basis and will continue to do so unless a sequential redemption event is triggered. Pursuant to the interest priority of payments, the Class F Notes started amortizing from the first payment date using available excess spread, with a target amortization schedule of 20 equal instalments to be paid after the replenishment of the liquidity reserve. PORTFOLIO PERFORMANCE As of the July 2025 payment date, loans that were one to two and two to three months delinquent represented 0.8% and 0.2% of the portfolio balance, respectively, while loans that were more than three months delinquent represented 1.0%. Gross cumulative defaults amounted to 3.4% of the original portfolio balance, of which 0.2% recovered to date. PORTFOLIO ASSUMPTIONS AND KEY DRIVERS Morningstar DBRS maintained its base case PD and LGD assumption at 4.75% and 84.0%, respectively. CREDIT ENHANCEMENT The subordination of the respective junior notes, over-collateralization of the outstanding collateral portfolio and Part 2 of the liquidity reserve (as defined in the next paragraph), provide credit enhancement. As of the July 2025 payment date, credit enhancement to the Class A, Class B, Class C, Class D, Class E and Class F have slightly increased since the issue date to 25.4%, 20.5%, 15.3%, 10.1%, 4.9% and 3.5%, respectively from 24.8%, 19.8%, 14.5%, 9.3%, 4.0% and 2.6%, respectively. The transaction benefits from an amortizing liquidity reserve with a target balance at 1.5% of the outstanding balance of the Notes which is replenished in two different positions in the interest waterfall: -- Part 1 has required amount equal to 1% of the Notes' outstanding amount with a floor amount of EUR 3,916,000 and can cover shortfalls in senior expenses, swap payments, and interest on the Class A Notes and, if not deferred, interest on the Class B through Class F Notes. -- Part 2 has a required amount defined as the difference between the required aggregate amount and Part 1 and can be used to clear the remaining shortfalls and any debit in the principal deficiency ledgers. The excess reserve amount could also cover items below the reserve replenishment, such as deferred interest on the junior notes and Class F Notes principal. Since March 2024 payment date the liquidity reserve was not at its target and consequently Class F Notes stopped amortizing. As of July 2025 payment date, the liquidity reserve outstanding amount was EUR 5.6 million, below its target at EUR 8.5 million. A commingling reserve is also available to the Issuer if the rating of Santander Consumer Finance S.A. falls below the required credit rating or Santander Consumer Finance S.A. ceases to have direct ownership of at least 50% of the originator. The required amount is equal to the sum of (A) 1.5 times the scheduled collections for the next month and (B) 2.75% of the outstanding portfolio balance as at the preceding payment date. The Bank of New York Mellon, Frankfurt Branch acts as the account bank for the transaction. Based on Morningstar DBRS' private credit rating, the downgrade provisions outlined in the transaction documents, and other mitigating factors inherent in the transaction structure, Morningstar DBRS considers the risk arising from the exposure to the account bank to be consistent with the credit ratings assigned to the Notes, as described in Morningstar DBRS' "Legal and Derivative Criteria for European Structured Finance Transactions" methodology. DZ BANK AG Deutsche Zentral-Genossenschaftsbank, acts as the swap counterparty for the transaction. Morningstar DBRS reference credit rating at AA (low) is consistent with the first rating threshold as described in Morningstar DBRS' "Legal and Derivative Criteria for European Structured Finance Transactions" methodology. Notes: All figures are in euros unless otherwise noted. ============= I R E L A N D ============= ANCHORAGE CAPITAL 2: S&P Assigns B- (sf) Rating to Class F-R Notes ------------------------------------------------------------------ S&P Global Ratings assigned its credit ratings to Anchorage Capital Europe CLO 2 DAC's class A-R to F-R European cash flow CLO notes, and the class A loan. At closing, the issuer had unrated subordinated notes outstanding from the existing transaction and issued an additional EUR17.60 million of subordinated notes. This transaction is a reset of an existing transaction that originally closed on April 20, 2021. The existing classes of notes will be fully redeemed with the proceeds from the issuance of the replacement notes on the reset date. The ratings reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes and loan through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,756.27 Default rate dispersion 550.43 Weighted-average life (years) 4.61 Weighted-average life (years) extended to cover the length of the reinvestment period 4.61 Obligor diversity measure 134.94 Industry diversity measure 18.95 Regional diversity measure 1.20 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 2.86 Actual 'AAA' weighted-average recovery (%) 36.59 Actual weighted-average spread (net of floors; %) 3.79 Actual weighted-average coupon (%) 5.11 Rationale Under the transaction documents, the rated notes will pay quarterly interest unless a frequency switch event occurs. Following this, the notes will permanently switch to semiannual payments. The portfolio's reinvestment period ends approximately 4.5 years after closing, and its noncall period ends 1.5 years after closing. S&P said, "Our ratings reflect our assessment of the collateral portfolio's credit quality, which has a weighted-average rating of 'B'. The portfolio is well-diversified as of the closing date, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, we have conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we used the EUR400 million target par amount, the actual weighted-average spread (3.79%), the actual weighted-average coupon (5.11%), and the actual weighted-average recovery rates at all rating levels. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Our credit and cash flow analysis indicates that the available credit enhancement for the class B-R to E-R notes benefits from break-even default rate (BDR) and scenario default rate cushions that we would typically consider commensurate with higher ratings than those assigned. However, as the CLO is still in its reinvestment phase, during which the transaction's credit risk profile could deteriorate, we have capped our ratings assigned to the notes. The class A-R, F-R notes and A loan can withstand stresses commensurate with the assigned ratings. "Until the end of the reinvestment period on Jan. 15, 2030, the collateral manager may substitute assets in the portfolio for so long as our CDO Monitor test is maintained or improved in relation to the initial ratings on the notes. This test looks at the total amount of losses that the transaction can sustain as established by the initial cash flows for each rating, and it compares that with the current portfolio's default potential plus par losses to date. As a result, until the end of the reinvestment period, the collateral manager may through trading deteriorate the transaction's current risk profile, as long as the initial ratings are maintained." Following the end of the reinvestment period, certain assets can be substituted as long as they meet the reinvestment criteria. S&P said, "Under our structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings as of the closing date. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "The transaction's legal structure and framework is bankruptcy remote. The issuer is a special-purpose entity that meets our criteria for bankruptcy remoteness. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe our ratings are commensurate with the available credit enhancement for the class A-R to F-R notes. "Following the application of our 'CCC' rating criteria, we consider that the available credit enhancement for the class F-R notes is commensurate with the assigned rating. "In addition to our standard analysis, to provide an indication of how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we have also included the sensitivity of the ratings on the class A-R to E-R notes based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F-R notes." The transaction securitizes a portfolio of primarily senior secured leveraged loans and bonds, and it is managed by Anchorage CLO ECM, LLC. Environmental, social, and governance S&P said, "We regard the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit assets from being related to certain activities, including, obligors deriving revenue from certain industries like production of palm oil, affecting animal welfare etc. Accordingly, since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Ratings Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate§ A-R AAA (sf) 121.00 38.00 3mE +1.38% A loan AAA (sf) 127.00 38.00 3mE +1.38% B-R AA (sf) 42.00 27.50 3mE +2.10% C-R A (sf) 24.00 21.50 3mE +2.50% D-R BBB- (sf) 29.00 14.25 3mE +3.40% E-R BB- (sf) 20.00 9.25 3mE +6.00% F-R B- (sf) 11.00 6.50 3mE +8.52% Sub. Notes NR 59.60 N/A N/A *The ratings assigned to the class A-R and B-R notes, and A loan address timely interest and ultimate principal payments. The ratings assigned to the class C-R to F-R notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month Euro Interbank Offered Rate (EURIBOR) when a frequency switch event occurs. NR--Not rated. N/A--Not applicable. 3mE--Three-month EURIBOR. ARINI EUROPEAN VI: S&P Assigns B- (sf) Rating to Class F Notes -------------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Arini European CLO VI DAC's class A, B, C, D, E, and F notes. The issuer also issued unrated subordinated notes. This is a European cash flow CLO transaction, securitizing a pool of primarily syndicated senior secured loans or bonds. The portfolio's reinvestment period will end approximately 4.51 years after closing. Under the transaction documents, the rated notes pay quarterly interest unless there is a frequency switch event. Following this, the notes will switch to semiannual payment. The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, S&P has conducted its credit and cash flow analysis by applying its criteria for corporate cash flow CDOs. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,662.11 Default rate dispersion 586.25 Weighted-average life (years) excluding reinvestment period 5.12 Obligor diversity measure 143.25 Industry diversity measure 26.11 Regional diversity measure 1.20 Transaction key metrics Total par amount (mil. EUR) 400 Defaulted assets (mil. EUR) 0 Number of performing obligors 169 Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 0.88 Target 'AAA' weighted-average recovery (%) 36.92 Target weighted-average spread net of floors (%) 3.74 Target weighted-average coupon (%) 2.25 S&P said, "In our cash flow analysis, we modeled the EUR400 million target par amount, the target weighted-average spread of 3.39%, the target weighted-average coupon of 3.90%, and the covenanted weighted-average recovery rate of 35.92% on the AAA level. For all the other rated notes, we used the target weighted-average recovery rates. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Following the application of our structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently limited at the assigned ratings, as the exposure to individual sovereigns does not exceed the diversification thresholds outlined in our criteria. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "The transaction's legal structure is bankruptcy remote, in line with our legal criteria. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe that our ratings are commensurate with the available credit enhancement for the class A to E notes. "For the class F notes, our credit and cash flow analysis indicates that the available credit enhancement could withstand stresses commensurate with a lower rating. However, we have applied our 'CCC' rating criteria, resulting in a 'B- (sf)' rating on this class of notes." The ratings uplift for the class F notes reflects several key factors, including: -- The class F notes' available credit enhancement, which is in the same range as that of other CLOs S&P has rated and that has recently been issued in Europe. -- The portfolio's average credit quality, which is similar to other recent CLOs. -- S&P's model generated break-even default rate at the 'B-' rating level of 22.38% (for a portfolio with a weighted-average life of 5.12 years), versus if it was to consider a long-term sustainable default rate of 3.1% for 5.12 years, which would result in a target default rate of 15.87%. -- S&P does not believe that there is a one-in-two chance of this note defaulting. -- S&P does not envision this tranche defaulting in the next 12-18 months. -- Following this analysis, S&P considers that the available credit enhancement for the class F notes is commensurate with the assigned 'B- (sf)' rating. S&P said, "Our credit and cash flow analysis indicates that the available credit enhancement for the class B to D notes is commensurate with higher ratings than those we have assigned. However, as the CLO will have a reinvestment period, during which the transaction's credit risk profile could deteriorate, we have capped our ratings on these notes. "In addition to our standard analysis, we have also included the sensitivity of the ratings on the class A to E notes based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F notes." Environmental, social, and governance S&P said, "We regard the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit or limit assets from being related to certain industries. Since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Arini European CLO VI is a European cash flow CLO securitization of a revolving pool, comprising euro-denominated senior secured loans and bonds issued mainly by speculative-grade borrowers. Arini Capital Management US LLC is the collateral manager. Ratings Amount Class Rating* (mil. EUR) Sub (%) Interest rate§ A AAA (sf) 248.00 38.00 Three/six-month EURIBOR plus 1.32% B AA (sf) 44.00 27.00 Three/six-month EURIBOR plus 2.00% C A (sf) 24.00 21.00 Three/six-month EURIBOR plus 2.40% D BBB- (sf) 28.00 14.00 Three/six-month EURIBOR plus 3.45% E BB- (sf) 18.00 9.50 Three/six-month EURIBOR plus 5.75% F B- (sf) 12.00 6.50 Three/six-month EURIBOR plus 8.25% Sub notes NR 29.70 N/A N/A *The ratings assigned to the class A and B notes address timely interest and ultimate principal payments. The ratings assigned to the class C to F notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. EURIBOR--Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. CVC CORDATUS V: Fitch Assigns 'B-sf' Final Rating to Cl. F-R Notes ------------------------------------------------------------------ Fitch Ratings has assigned CVC Cordatus Loan Fund V DAC reset notes final ratings, as detailed below. Entity/Debt Rating ----------- ------ CVC Cordatus Loan Fund V DAC Class A-R XS3093346552 LT AAAsf New Rating Class B-R XS3093345406 LT AAsf New Rating Class C-R XS3093346719 LT Asf New Rating Class D-R XS3093345828 LT BBB-sf New Rating Class E-R XS3093346040 LT BB-sf New Rating Class F-R XS3093346982 LT B-sf New Rating Subordinated XS1212474966 LT NRsf New Rating Transaction Summary CVC Cordatus Loan Fund V DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds have been used to redeem the existing notes, except the subordinated notes, and to fund the existing portfolio with a target par of EUR400 million. The portfolio is actively managed by CVC Credit Partners Investment Management Limited. The CLO has a five-year reinvestment period and a 7.5-year weighted average life (WAL) test at closing, which can be extended 1.5 years after closing, subject to conditions. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'/'B-'. The Fitch-weighted average rating factor of the identified portfolio is 25.5. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second lien, unsecured and mezzanine assets. The Fitch-weighted average recovery rate of the identified portfolio is 59.6%. Diversified Portfolio (Positive): The transaction has two matrices that are effective at closing, corresponding to a 7.5-year WAL and two different fixed-rate asset limits of 5% and 10%. The transaction includes two forward matrices corresponding to the same fixed-rate asset limits but a seven-year WAL, which can be selected two years after closing, subject to the aggregate collateral balance (with defaulted obligations carried at collateral value) being equal to or exceeding the reinvestment target par. The transaction includes also two extended WAL matrices with the same fixed rate limits but a nine-year WAL. The switch to these more conservative matrices allows the manager to step up the WAL without conditions on the WAL test step-up determination date. The transaction also has various concentration limits, including a top 10 obligor concentration limit of 20% and maximum exposure to the three largest Fitch-defined industries of 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. WAL Step-Up Feature (Neutral): The transaction can extend the WAL test by 18 months, from 1.5 years after closing. The WAL extension is at the option of the manager, but subject to conditions including passing the Fitch collateral quality tests, and the aggregate collateral balance with defaulted assets at their collateral value being equal to or greater than the reinvestment target par. Portfolio Management (Neutral): The transaction has a five-year reinvestment period and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Positive): The WAL for the transaction's Fitch-stressed portfolio analysis and matrices analysis is 12 months less than the WAL covenant. This is to account for the strict reinvestment conditions envisaged by the transaction after its reinvestment period, which include passing the coverage tests and the Fitch 'CCC' bucket limitation test after reinvestment, and a WAL covenant that gradually steps down before and after the end of the reinvestment period. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during stress periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would have no impact on the class A-R notes and would lead to downgrades of up to two notches each for the class B-R, C-R, D-R and E-R notes and to below 'B-sf' for the class F-R notes. Downgrades, which are based on the identified portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. The class B-R, D-R, E-R and F-R notes each have a rating cushion of two notches and the class C-R notes have a cushion of one notch, due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded either due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to four notches each for the class A-R, B-R, C-R and D-R notes, and to below 'B-sf' for the class E-R and F-R notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to two notches each for the notes, except the 'AAAsf' notes. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the remaining life of the transaction. Upgrades after the end of the reinvestment period may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognised Statistical Rating Organisations and/or European Securities and Markets Authority- registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for CVC Cordatus Loan Fund V DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. CVC CORDATUS XXVIII: S&P Assigns B- (sf) Rating to Cl. F-R Notes ---------------------------------------------------------------- S&P Global Ratings assigned its credit ratings to CVC Cordatus Loan Fund XXVIII DAC's class A-R, B-R, C-R, D-R, E-R, and F-R notes. The issuer has unrated subordinated notes outstanding from the existing transaction and also issued EUR1.6 million of additional subordinated notes. This transaction is a reset of the already existing transaction that closed in August 2023. The issuance proceeds of the refinancing debt were used to redeem the refinanced debt, for which we withdrew our ratings at the same time, and pay fees and expenses incurred in connection with the reset. The ratings assigned to the notes reflect S&P's assessment of: -- The diversified collateral pool, which consists primarily of broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which is in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,869.11 Default rate dispersion 516.49 Weighted-average life (years) 4.52 Weighted-average life extended to cover the length of the reinvestment period (years) 4.52 Obligor diversity measure 120.44 Industry diversity measure 22.23 Regional diversity measure 1.16 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 3.45 Target 'AAA' weighted-average recovery (%) 36.51 Target weighted-average spread (%) 3.81 Target weighted-average coupon (%) 4.31 Liquidity facility This transaction has a EUR1.0 million liquidity facility, provided by The Bank of New York Mellon, with a maximum commitment period of four years and an option to extend for a further 24 months. The margin on the facility is 2.50% and drawdowns are limited to the amount of accrued but unpaid interest on collateral debt obligations. The liquidity facility is repaid using interest proceeds in a senior position of the waterfall or repaid directly from the interest account on a business day earlier than the payment date. For its cash flow analysis, S&P assumes that the liquidity facility is fully drawn throughout the six-year period and that the amount is repaid just before the coverage tests breach. Rating rationale Under the transaction documents, the rated notes pay quarterly interest unless a frequency switch event occurs. Following this, the notes will switch to semiannual payments. The portfolio's reinvestment period will end approximately 4.5 years after closing. S&P said, "At closing, we expect the portfolio to be well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, we have conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we used the EUR375 million target par amount, the covenanted weighted-average spread (3.72%), the target weighted-average coupon (4.31%), and the target weighted-average recovery rates calculated in line with our CLO criteria for all rating levels. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Until the end of the reinvestment period on Feb. 15, 2030, the collateral manager may substitute assets in the portfolio for so long as our CDO Monitor test is maintained or improved in relation to the initial ratings on the notes. This test looks at the total amount of losses that the transaction can sustain as established by the initial cash flows for each rating, and it compares that with the current portfolio's default potential plus par losses to date. As a result, until the end of the reinvestment period, the collateral manager may through trading deteriorate the transaction's current risk profile, if the initial ratings are maintained. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "Under our structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "The transaction's legal structure and framework is bankruptcy remote, in line with our legal criteria. "Our credit and cash flow analysis indicates that the available credit enhancement for the class B-R, C-R, and D-R notes could withstand stresses commensurate with higher rating levels than those we have assigned. However, as the CLO will be in its reinvestment phase starting from closing, during which the transaction's credit risk profile could deteriorate, we have capped our ratings assigned to the notes. For the class F-R notes, our credit and cash flow analysis indicates that the available credit enhancement could withstand stresses commensurate with a lower rating. However, we have applied our 'CCC' rating criteria, resulting in a 'B- (sf)' rating on this class of notes. The ratings uplift for the class F-R notes reflects several key factors, including: -- The class F-R notes' available credit enhancement, which is in the same range as that of other CLOs S&P has rated and that has recently been issued in Europe. -- The portfolio's average credit quality, which is similar to other recent CLOs. -- S&P's model generated break-even default rate at the 'B-' rating level of 22.20% (for a portfolio with a weighted-average life of 4.5 years), versus if it was to consider a long-term sustainable default rate of 3.1% for 4.52 years, which would result in a target default rate of 14.01%. -- S&P does not believe that there is a one-in-two chance of this note defaulting. -- S&P does not envision this tranche defaulting in the next 12-18 months. -- Following this analysis, S&P considers that the available credit enhancement for the class F-R notes is commensurate with the assigned 'B- (sf)' rating. S&P said, "Taking the above factors into account and following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe that the assigned ratings are commensurate with the available credit enhancement for all the rated classes of notes. "In addition to our standard analysis, to provide an indication of how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we have also included the sensitivity of the ratings on the class A-R to E-R notes based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F-R notes." Environmental, social, and governance S&P said, "We regard the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit or limit assets from being related to certain industries. Since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." The transaction securitizes a portfolio of primarily senior secured leveraged loans and bonds and will be managed CVC Credit Partners Investment Management Ltd. Ratings Amount Credit Class Rating* (mil. EUR) Interest rate§ enhancement (%) A-R AAA (sf) 228.70 3/6-month EURIBOR + 1.32% 39.01 B-R AA (sf) 43.10 3/6-month EURIBOR + 1.95% 27.52 C-R A (sf) 22.60 3/6-month EURIBOR + 2.30% 21.49 D-R BBB- (sf) 26.20 3/6-month EURIBOR + 3.15% 14.51 E-R BB- (sf) 18.70 3/6-month EURIBOR + 5.75% 9.52 F-R B- (sf) 11.30 3/6-month EURIBOR + 8.54% 6.51 Sub NR 28.70 N/A N/A *The ratings assigned to the class A-R and B-R notes address timely interest and ultimate principal payments. The ratings assigned to the class C-R, D-R, E-R, and F-R notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. NR--Not rated. N/A--Not applicable. EURIBOR--Euro Interbank Offered Rate. DILOSK RMBS 7: DBRS Confirms BB Rating on Class E Notes ------------------------------------------------------- DBRS Ratings GmbH took the following credit rating actions on the notes issued by Dilosk RMBS No. 7 DAC (the Issuer): -- Class A confirmed at AAA (sf) -- Class B confirmed at AA (low) (sf) -- Class C confirmed at A (sf) -- Class D confirmed at BBB (sf) -- Class E confirmed at BB (sf) -- Class F upgraded to B (sf) from B (low) (sf) Morningstar DBRS also discontinued its credit rating on the Class X1 notes following its repayment in full at the May 2025 payment date. The credit rating on the Class A notes addresses the timely payment of interest and ultimate payment of principal on or before the legal final maturity date in November 2062. The credit rating on the Class B notes addresses the ultimate payment of interest and principal while junior and the timely payment of interest while the senior-most class outstanding. The credit ratings on the Class C, Class D, Class E, and Class F notes address the ultimate payment of interest and principal. CREDIT RATING RATIONALE The credit rating actions follow an annual review of the transaction and are based on the following analytical considerations: -- Portfolio performance, in terms of delinquencies, defaults and losses as of 30 April 2025 (corresponding to the May 2025 payment date). -- Portfolio default rate (PD), loss given default (LGD) and expected loss assumptions on the remaining receivables. -- Current available credit enhancement (CE) to the notes to cover the expected losses at their respective credit rating levels at the May 2025 payment date. The transaction is a securitization of first-lien buy-to-let mortgage loans originated and serviced by Dilosk DAC (Dilosk), and granted to individuals, corporates, and pension trusts in the Republic of Ireland. All primary servicing activities are delegated to BCMGlobal under the Master Servicing Agreement with Dilosk. CSC Capital Markets (Ireland) Limited acts as the back-up servicer facilitator. The first optional redemption date is at the payment date in February 2027, coinciding with a step-up of the margins on the Class A to Class F notes. PORTFOLIO PERFORMANCE As of April 30, 2025, loans two to three months in arrears represented 0.0% of the outstanding portfolio balance, loans more than three months in arrears represented 0.2%, and the cumulative default ratio was 0.0%. PORTFOLIO ASSUMPTIONS AND KEY DRIVERS Morningstar DBRS conducted a loan-by-loan analysis of the remaining pool of receivables and has updated its base case PD and LGD assumptions at the B (sf) credit rating level to 1.7% and 10.1% respectively. CREDIT ENHANCEMENT CE to the notes consists of the subordination of junior classes and the general reserve fund. As of the May 2025 payment date, CE to the rated notes increased as follows compared to the last annual review: -- CE to the Class A to 14.8% from 12.5%; -- CE to the Class B to 10.9% from 9.1%; -- CE to the Class C to 6.4% from 5.1%; -- CE to the Class D to 3.8% from 2.8%; -- CE to the Class E to 2.2% from 1.4%; and -- CE to the Class F to 1.2% from 0.6%. As of the May 2025 payment date, the general reserve fund was at its target level of approximately EUR 1.1 million, equal to 1.25% of the original principal balance of the Class A to F notes, minus the liquidity reserve target amount. The general reserve fund is available to cover senior fees, interest, and principal via the principal deficiency ledgers (PDLs) on the rated notes. As of the May 2025 payment date, all PDLs were clear. As of the May 2025 payment date, the liquidity reserve fund was at its target level of approximately EUR 1.4 million, equal to 1.0% of the outstanding principal balance of the Class A notes and is available to cover senior fees and interest on the Class A notes. The Bank of New York Mellon, Dublin Branch (BNY Mellon) acts as the account bank for the transaction. Based on the Morningstar DBRS private credit rating of BNY Mellon, the downgrade provisions outlined in the transaction documents, and other mitigating factors inherent in the transaction structure, Morningstar DBRS considers the risk arising from the exposure to the account bank to be consistent with the credit rating assigned to the Class A notes, as described in Morningstar DBRS' "Legal and Derivative Criteria for European Structured Finance Transactions" methodology. Notes: All figures are in euros unless otherwise noted. GROSVENOR PLACE 2025-3: S&P Assigns B-(sf) Rating to Class F Notes ------------------------------------------------------------------ S&P Global Ratings assigned its credit ratings to Grosvenor Place CLO 2025-3 DAC's class A, B, C, D, E, and F notes. At closing, the issuer also issued unrated subordinated notes. The ratings reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,575.52 Default rate dispersion 611.42 Weighted-average life (years) 4.84 Obligor diversity measure 133.23 Industry diversity measure 25.42 Regional diversity measure 1.19 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 0.00 Actual 'AAA' weighted-average recovery (%) 37.04 Actual weighted-average spread (net of floors; %) 3.65 Under the transaction documents, the rated notes will pay quarterly interest unless a frequency switch event occurs. Following this, the notes will switch to semiannual payments. The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, S&P has conducted our credit and cash flow analysis by applying its criteria for corporate cash flow CDOs. S&P said, "In our cash flow analysis, we used the EUR400 million target par amount, the covenanted weighted-average spread (3.55%), the covenanted weighted-average coupon (4.50%), and the target weighted-average recovery rates calculated in line with our CLO criteria for all classes of notes. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Until the end of the reinvestment period on Feb. 15, 2030, the collateral manager may substitute assets in the portfolio as long as our CDO Monitor test is maintained or improved in relation to the initial ratings on the notes. This test looks at the total amount of losses that the transaction can sustain--as established by the initial cash flows for each rating--and compares that with the current portfolio's default potential plus par losses to date. As a result, until the end of the reinvestment period, the collateral manager may through trading deteriorate the transaction's current risk profile, if the initial ratings are maintained. "Under our structured finance sovereign risk criteria, we consider that the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our counterparty criteria, and the legal structure and framework is bankruptcy remote, in line with our legal criteria. "The CLO is managed by CQS (UK) LLP, and the maximum potential rating on the liabilities is 'AAA' under our operational risk criteria. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe the rating is commensurate with the available credit enhancement for the class A notes. Our credit and cash flow analysis indicates that the available credit enhancement for the class B to E notes could withstand stresses commensurate with higher ratings than those assigned. However, as the CLO will be in its reinvestment phase starting from closing--during which the transaction's credit risk profile could deteriorate--we have capped our ratings on the notes. "For the class F notes, our credit and cash flow analysis indicates that the available credit enhancement could withstand stresses commensurate with a lower rating. However, we have applied our 'CCC' rating criteria, resulting in a 'B- (sf)' rating on this class of notes." The ratings uplift for the class F notes reflects several key factors, including: -- The class F notes' available credit enhancement, which is in the same range as that of other CLOs S&P has rated and that has recently been issued in Europe. -- The portfolio's average credit quality, which is similar to other recent CLOs. -- S&P's model generated break-even default rate at the 'B-' rating level of 23.62% (for a portfolio with a weighted-average life of 4.84 years), versus if S&P has to consider a long-term sustainable default rate of 3.1% for 4.84 years, which would result in a target default rate of 15.02%. -- S&P does not believe that there is a one-in-two chance of this note defaulting. -- S&P does not envision this tranche defaulting in the next 12-18 months. S&P said, "Following this analysis, we consider that the available credit enhancement for the class F notes is commensurate with the assigned 'B- (sf)' rating. "Given our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe our ratings are commensurate with the available credit enhancement for all the rated classes of notes. "In addition to our standard analysis, to indicate how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we also included the sensitivity of the ratings on class A to E notes based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F notes." Grosvenor Place CLO 2025-3 is a European cash flow CLO securitization of a revolving pool, comprising euro-denominated senior secured loans and bonds issued mainly by speculative-grade borrowers. CQS (UK) LLP manages the transaction. Environmental, social, and governance S&P said, "We regard the transaction's exposure to environmental, social, and governance (ESG) credit factors as broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental and social credit factors is viewed as below average, while governance credit factors are average. For this transaction, the documents prohibit assets from being related to certain activities. Accordingly, since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Ratings list Amount Credit Class Rating* (mil. EUR) Interest rate§ enhancement (%) A AAA (sf) 248.00 3M EURIBOR plus 1.37% 38.00 B AA (sf) 44.00 3M EURIBOR plus 2.20% 27.00 C A (sf) 24.00 3M EURIBOR plus 2.55% 21.00 D BBB- (sf) 28.00 3M EURIBOR plus 3.60% 14.00 E BB- (sf) 18.00 3M EURIBOR plus 6.10% 9.50 F B- (sf) 12.00 3M EURIBOR plus 8.49% 6.50 Sub. NR 31.00 N/A N/A *The ratings assigned to the class A and B notes address timely interest and ultimate principal payments. The ratings assigned to the class C, D, E, and F notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. 3 M--Three-month. EURIBOR--Euro Interbank Offered Rate. Sub.--Subordinated. NR--Not rated. N/A--Not applicable. MADISON PARK XV: Fitch Assigns B-sf Final Rating to Cl. F-R-R Notes ------------------------------------------------------------------- Fitch Ratings has assigned Madison Park Euro Funding XV DAC's refinancing notes a final rating and affirmed the class A-1-R notes, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Madison Park Euro Funding XV DAC A-1-R XS2472843973 LT AAAsf Affirmed AAAsf A-2-R XS2472844278 LT PIFsf Paid In Full AAAsf A-2-R-R XS3145350222 LT AAAsf New Rating B-R XS2472844435 LT PIFsf Paid In Full AAsf B-R-R XS3145350578 LT AAsf New Rating C-R XS2472844948 LT PIFsf Paid In Full Asf C-R-R XS3145350735 LT Asf New Rating D-R XS2472845168 LT PIFsf Paid In Full BBB-sf D-R-R XS3145351469 LT BBB-sf New Rating E-R XS2472845325 LT PIFsf Paid In Full BB-sf E-R-R XS3145352350 LT BB-sf New Rating F-R XS2472845671 LT PIFsf Paid In Full B-sf F-R-R XS3145352947 LT B-sf New Rating Transaction Summary Madison Park Euro Funding XV DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans, first-lien last-out loans and high-yield bonds. The refinancing note proceeds have been used to redeem the outstanding notes (apart from the class A-1-R and the subordinated ones) and fund a portfolio with a target par of EUR400 million. The portfolio is actively managed by Credit Suisse Asset Management Limited. The CLO will exit its reinvestment period in July 2027 and has a six-year weighted average life (WAL). KEY RATING DRIVERS 'B'/'B-' Portfolio Credit Quality: Fitch places the average credit quality of obligors at 'B'/'B-'. The weighted average rating factor, as calculated by Fitch, is 25.8. High Recovery Expectations: At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate of the current portfolio is 60.7%. Diversified Portfolio: The transaction includes two updated Fitch matrices, effective at closing, corresponding to a six-year WAL, fixed-rate asset limits at 7.5% and 12.5% and a top 10 obligor concentration limit at 23%. The transaction includes various concentration limits in the portfolio, including the maximum exposure to the three largest Fitch-defined industries in the portfolio at 42.5%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Affirmation of Non-Refinanced Notes: The non-refinanced notes have been affirmed with a Stable Outlook in line with their model-implied rating under the updated matrices. Transaction Inside Reinvestment Period: The transaction is within its reinvestment period, which expires in July 2027, and the manager can reinvest principal proceeds and sale proceeds subject to compliance with the reinvestment criteria. Given the manager's ability to reinvest, Fitch's analysis is based on a stressed portfolio, which tested the notes' achievable ratings across the matrices, since the portfolio can still migrate to different collateral quality tests. Cash Flow Modelling: The transaction needs to satisfy the coverage tests and the Fitch 'CCC' test after the reinvestment period, among other reinvestment criteria. Together with a consistently decreasing WAL, this would reduce the effective risk horizon of the portfolio during stress periods. However, Fitch used the covenanted WAL test at closing for the stressed portfolio modelling because the WAL at closing is already at the floor of six years. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would have no impact on the notes. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of defaults and portfolio deterioration. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded either due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to three notches each for the notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to three notches except for the 'AAAsf' notes, which are at the highest level on Fitch's rating scale and cannot be upgraded. During the reinvestment period, based on the Fitch-stressed portfolio, upgrades may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the remaining life of the transaction. After the end of the reinvestment period, upgrades may result from a stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Madison Park Euro Funding XV DAC Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Madison Park Euro Funding XV DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. NEUBERGER BERMAN 7: Fitch Assigns B-sf Final Rating to Cl. F Notes ------------------------------------------------------------------ Fitch Ratings has assigned Neuberger Berman Loan Advisers Euro CLO 7 DAC final ratings, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Neuberger Berman Loan Advisers Euro CLO 7 DAC A-1 XS3058759377 LT AAAsf New Rating AAA(EXP)sf A-2 XS3058759534 LT AAAsf New Rating AAA(EXP)sf B XS3058759880 LT AAsf New Rating AA(EXP)sf C XS3058760201 LT Asf New Rating A(EXP)sf D XS3058760466 LT BBB-sf New Rating BBB-(EXP)sf E XS3058760623 LT BB-sf New Rating BB-(EXP)sf F XS3058760979 LT B-sf New Rating B-(EXP)sf Performance XS3058761605 LT NRsf New Rating Senior Preferred Return XS3058761274 LT NRsf New Rating Subordinated Notes XS3058761860 LT NRsf New Rating NR(EXP)sf Subordinated Preferred Return XS3058761431 LT NRsf New Rating Transaction Summary Neuberger Berman Loan Advisers Euro CLO 7 DAC is a securitisation of mainly senior secured loans and secured senior bonds (at least 90%), with a component of senior unsecured, mezzanine and second-lien loans. Note proceeds have been used to fund a portfolio with a target par of EUR300 million. The portfolio is actively managed by Neuberger Berman Europe Limited. The CLO has a 4.6-year reinvestment period and a 7.5-year weighted average life (WAL) test. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors to be in the 'B' category. The Fitch weighted average rating factor of the identified portfolio is 23.6. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations (96% if the class A-1 investor holds the majority of the class A-1 notes). Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate of the identified portfolio is 61.8%. Diversified Portfolio (Positive): The transaction includes two matrices that are effective at closing, with fixed-rate limits of 5% and 12.5%. The transaction includes various concentration limits in the portfolio, including the top 10 obligor concentration limit at 20% and the maximum exposure to the three largest (Fitch-defined) industries in the portfolio at 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. WAL Step-Up Feature (Neutral): The deal could extend the WAL test by one year from the date that is one year from closing, if the collateral principal amount (defaulted obligations at the lower of their market value and Fitch recovery rate) is at least at the target par and if the transaction is passing in all its tests. Portfolio Management (Neutral): The transaction has an around 4.6-year reinvestment period and reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Positive): The WAL used for the transaction's stress portfolio analysis was reduced by one year, down to 6.5 years. This accounts for the strict reinvestment conditions envisaged by the transaction after its reinvestment period. These conditions include passing both the coverage tests and the Fitch 'CCC' maximum limit, as well as a WAL covenant that progressively steps down, before and after the end of the reinvestment period. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during the stress period. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would lead to downgrades of one notch each for the class B to E notes, to below 'B-sf' for the class F notes and have no impact on the class A-1 and A-2 notes. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of default and portfolio deterioration. Due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio, the class B to F notes have two-notch cushions while the class A-1 and A-2 notes have no rating cushion. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of four notches for the class B notes, three notches for the class A-1, A-2 and C notes, two notches for the class D notes and to below 'B-sf' for the class E and F notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR across all ratings and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to three notches for the notes, except for the 'AAAsf' rated notes, which are at the highest level on Fitch's scale and cannot be upgraded. During the reinvestment period, based on the Fitch-stressed portfolio, upgrades may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, meaning the notes are able to withstand larger-than-expected losses for the transaction's remaining life. After the end of the reinvestment period, upgrades may occur on stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Neuberger Berman Loan Advisers Euro CLO 7 DAC The majority of the underlying assets or risk presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Neuberger Berman Loan Advisers Euro CLO 7 DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. =================== K A Z A K H S T A N =================== PRIVATE COMPANY: Fitch Affirms 'BB' Long-Term IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed Private Company BI Development Ltd.'s Long-Term Issuer Default Rating (IDR) at 'BB', with a Stable Outlook. The affirmation is underpinned by the Kazakh homebuilder's prominent position in the expanding local real estate market and modest leverage. Fitch anticipates that buoyant housing demand in the largest urban centres of Kazakhstan (BBB/Stable) will support the group's residential-for-sale projects. Its EBITDA margin should reduce over the next two years due to a change in product mix, although Fitch expects it to remain healthy, at over 15%. The Stable Outlook reflects its expectation that BI Development will maintain a prudent approach to developments and maintain its risk-management policy to prevent a build-up of surplus inventory. Fitch expects financial leverage to remain low and net interest coverage to be ample. Key Rating Drivers Reputable Master Developer: BI Development focuses on the construction and sale of modern residential apartments in Kazakhstan's major urban centres. The group has established a strong reputation as a leading developer, managing all aspects of large-scale real estate projects, from master planning to development and management of residential communities. It typically oversees the project lifecycle, from land acquisition and zoning to infrastructure delivery and project completion. Its portfolio ranges from standard to premium apartments at various price points, with developments generally comprising condominium buildings averaging 150 units. Large-scale developments, such as 'Bigville', include schools, offices and other public facilities and amenities for local municipalities. Since 2022, the group has expanded its footprint internationally, with new projects in Uzbekistan (BB/Stable), where BI Development is active in 14 projects. Vast Landbank: BI Development's substantial landbank holdings in Kazakhstan largest cities should allow the group to lower land expenditure costs and consistently generate stable revenue through to 2029, supporting scale expansion and greater project diversification. A large portion of near-term income is already secured through signed contracts. Risk Management Policy: The group employs robust internal risk controls and consistently executes complex developments. To mitigate risk, large-scale projects are delivered in stages. It does not set formal presale targets, but structures projects in phases so that most units are sold during construction before commencing work on the same or neighbouring sites. For adjacent sites, BI Development proceeds after achieving sales of at least 50% of the project, or up to 70% for premium residential developments. Supportive Housing Demand: Kazakhstan's housing market recorded modest price growth in 2024. Demand remained concentrated in urban centres with established infrastructure, such as Almaty, Astana and the Karaganda Region. The demand is driven by shifting customer preferences towards modern, high-quality and spacious properties and increased interest in mixed-use developments. Economic growth, rising disposable incomes, favourable mortgage conditions and government initiatives promoting affordable housing continue to support market activity. The group is well positioned to capture this expanding demand. Leverage to Remain Low: BI Development has maintained debt/EBITDA below 1x during the past two years, declining from 2.4x in 2021, which had been affected by the Covid-19 pandemic. Fitch forecasts EBITDA leverage will remain below 1.5x through to 2028, with the group expected to retain a net cash position. EBITDA net interest coverage is anticipated to remain ample at above 15x over the next three years, assuming no major new debt issuance. Governance Constrained: As a private company, BI Development has a less robust governance framework and less frequent financial reporting than rated peers. This includes limited independence of its board, partial financial disclosure and related-party transactions in the wider group. These factors have a negative impact on the credit profile. Peer Analysis BI Development's offering is comparable to that of Via Celere Desarrollos Inmobiliarios, S.A.U. (BB-/Stable) in Spain and AEDAS Homes, S.A. (BB-/Rating Watch Negative): the two focus on mid- to high-value, multi-family, multi-storey condominiums in major cities in their markets. In contrast, UK-based peers Miller Homes Group (Finco) PLC (B+/Stable) and Maison Bidco Limited (Keepmoat; BB-/Stable) primarily develop single-family homes in regions outside London. All the groups address local demand for new housing: Binghatti Holding Ltd (BB-/Stable) in Dubai, which targets the mid-market, is expanding into the luxury market to attract high net worth individuals and investors. Emaar Properties PJSC (BBB/Stable), Arada Developments LLC (B+/Stable) and BI Development are master developers, with a focus on large-scale community projects, resulting in different business models to most EMEA homebuilders'. Adherence to a pre-sale target is a key consideration in Fitch's assessment of homebuilder business profiles, although it often reflects market practice rather than company-specific policy. There are no regulatory requirements for pre-sale thresholds ahead of construction in Kazakhstan. In France, Kaufman & Broad S.A. (BBB-/Stable) applies an internal pre-sale target of 60% before acquiring land and starting construction, supporting its working capital profile. Via Celere and AEDAS Homes set lower pre-sale thresholds of 30%-50%, which are typically required by Spanish financial institutions for development finance. BI Development's leverage profile, expected to be in a net cash position, is similar to that of Kaufman & Broad and The Berkeley Group Holdings plc (BBB-/Stable). Key Assumptions Fitch's Key Assumptions Within Its Rating Case for the Issuer - Revenue growth in 2025 and 2026 driven by record sales in 2024 - EBITDA margin in the mid-teens during 2025-2028 - Dividends payments to increase to about KZT60 billion a year to 2028, in line with the cash flow generated by BI Development - No M&As over the next four years RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA interest coverage below 5x - EBITDA gross leverage above 2.0x on sustained basis - Deterioration of the credit profile of Private Company BI Group Ltd, BI Development's parent company, which may result in the extraction of funds from the subsidiary - Shareholder-friendly policy leading to a deterioration of the financial profile Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Improved corporate governance and transparency - Further growth in size and diversification leading to the revenue generation of over EUR1.5 billion - Consistently positive FCF margins of over 3% - EBITDA gross leverage below 1.0x on sustained basis Liquidity and Debt Structure At end-2024, BI Development's liquidity was healthy, with Fitch-defined readily available cash of KZT320 billion. This is sufficient to cover short-term debt maturities of about KZT40 billion over the next 12 months. Outstanding bonds (KZT40 billion) have a maturity of between one and two years, aligned with the local market practice. The group also has access to uncommitted revolving credit facilities from local banks, which is typical in Kazakhstan. Fitch does not include uncommitted or short-term facilities in its assessment of BI Development's liquidity. At end-2024, the group's secured debt amounted to KZT30 billion, around a third of the outstanding debt. Issuer Profile BI Development specialises in building and selling modern apartments in Kazakhstan's largest conurbations. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations BI Development has an ESG Relevance Score of '4' for Governance Structure as the group is ultimately privately owned, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Private Company BI Development Ltd. LT IDR BB Affirmed BB =============== P O R T U G A L =============== TAGUS: DBRS Confirms B Rating on Class E Notes ---------------------------------------------- DBRS Ratings GmbH confirmed its credit ratings on the notes (collectively, the rated notes) issued by Tagus - Sociedade de Titularizacao de Creditos, S.A., Viriato Finance No. 1 (the Issuer): -- Class A notes at AA (low) (sf) -- Class B notes at A (high) (sf) -- Class C notes at BBB (high) (sf) -- Class D notes at BB (high) (sf) -- Class E notes at B (sf) The credit rating on the Class A notes addresses the timely payment of scheduled interest and the ultimate repayment of principal by the legal final maturity date in October 2040. The credit ratings on the Class B, Class C, Class D, and Class E notes address the ultimate payment of interest while junior to other outstanding classes of notes but the timely payment of scheduled interest when they are the senior-most tranche, and the ultimate repayment of principal by the final maturity date. CREDIT RATING RATIONALE The confirmations follow an annual review of the transaction and are based on the following analytical considerations: -- Portfolio performance, in terms of delinquencies, defaults, and losses, as of the June 2025 payment date; -- Probability of default (PD), loss given default (LGD), and expected loss assumptions on the remaining receivables; and -- Current available credit enhancement to the rated notes to cover the expected losses at their respective credit rating levels. The transaction is a securitization of Portuguese unsecured consumer loan receivables originated by WiZink Bank S.A.U., Portuguese Branch. The transaction closed in September 2021 and included an initial 12-month revolving period, which ended on the September 2022 payment date, when the rated notes started to amortize on a pro rata basis. As of the June 2025 payment date, the EUR 50.2 million portfolio (excluding defaulted receivables) consisted of fixed-rate unsecured amortizing personal loan receivables granted without a specific purpose for existing credit card customers (credito adicional) and further advances (top-up) to private individuals domiciled in Portugal. PORTFOLIO PERFORMANCE As of the June 2025 payment date, loans that were one to two months and two to three months delinquent represented 1.4% and 1.0% of the portfolio balance, respectively, while loans more than three months delinquent represented 1.8%. Gross cumulative defaults were 8.3% of the original portfolio balance, with cumulative recoveries of 71.7% to date. PORTFOLIO ASSUMPTIONS AND KEY DRIVERS Morningstar DBRS conducted a loan-by-loan analysis of the remaining pool of receivables and maintained its base case PD and LGD assumptions at 8.2% and 80.0%, respectively. CREDIT ENHANCEMENT The subordination of the junior obligations provides credit enhancement to the rated notes. As of the June 2025 payment date, credit enhancement to the Class A, Class B, Class C, Class D, and Class E notes was 24.0%, 20.0%, 12.0%, 6.5%, and 3.5%, respectively. The credit enhancement has remained stable because of the pro rata amortization mechanism and will continue to remain stable until a sequential redemption event occurs. The cash reserve account is available to cover senior expenses and interest shortfalls on the Class A, Class B, and Class C notes. The cash reserve account was funded at closing with EUR 1.3 million and its required balance is set at 1.0% of the outstanding Class A, Class B, and Class C notes, subject to a EUR 0.7 million floor. The cash reserve has always been at its target level and, as of the June 2025 payment date, stood at EUR 0.7 million. U.S. Bank Europe DAC (previously Elavon Financial Services DAC) is the account bank provider for the transaction. Based on the Morningstar DBRS' private credit rating on U.S. Bank Europe DAC and the downgrade provisions outlined in the transaction documents, Morningstar DBRS considers the risk arising from the exposure to the account bank to be consistent with the credit ratings assigned to the rated notes, as described in Morningstar DBRS' "Legal and Derivative Criteria for European Structured Finance Transactions" methodology. BNP Paribas SA (BNP Paribas) is the swap counterparty for the transaction. Morningstar DBRS' public credit rating on BNP Paribas is consistent with the credit ratings assigned to the rated notes, as described in Morningstar DBRS' "Legal and Derivative Criteria for European Structured Finance Transactions" methodology. Notes: All figures are in euros unless otherwise noted. =========== R U S S I A =========== TAJIKISTAN: S&P Affirms 'B/B' Sovereign Credit Ratings ------------------------------------------------------ On Aug. 15, 2025, S&P Global Ratings affirmed its 'B' long-term and 'B' short-term foreign and local currency sovereign credit ratings on Tajikistan. The outlook remains stable. The transfer and convertibility assessment is 'B'. Outlook S&P said, "The stable outlook reflects our expectation that Tajikistan can comfortably meet its moderate debt-servicing needs over the next 12 months. We also expect that Tajikistan's government debt will remain low and predominantly concessional, offsetting risks from the country's structurally volatile external position." Downside scenario S&P said, "We could take a negative rating action should Tajikistan's external or fiscal performance prove weaker than our base-case expectations, for example, because of a substantial slowdown in labor remittances. We could also lower the rating if the government's financing options tightened, for example, because of reduced access to concessional funding due to failure to meet access conditions." Upside scenario A positive rating action could result from a sustained improvement in Tajikistan's governance, transparency, and data disclosure standards, including in the broader public sector. Rationale Tajikistan remains a small land-locked economy with high transportation costs, and despite rapid expansion of domestic industrial production, continues to depend on labor remittances (48% of GDP in 2024), particularly from Russia. In a bid to enhance domestic energy security and raise renewable energy export potential, Tajikistan has engaged with concessional partners to mobilize external financing for its flagship Rogun Hydro Power Project (HPP). The government negotiated financing packages with a consortium of multilateral and bilateral partners to finance about 50% of the estimated $6.4 billion (40% of projected 2025 GDP) required to complete the project by 2035. However, there have been delays in unlocking this funding, particularly from the World Bank, pending completion of remaining effectiveness conditions. S&P said, "In our view, Tajikistan's government debt maturity profile will remain manageable over the next 12 months, owing to the prevalence of official concessional debt. The government is repaying is sole outstanding Eurobond in six US$83 million semiannual installments scheduled to finish in September 2027 through a combination of domestic debt issuance, reserve drawdowns, and gold sales through the Ministry of Finance. We expect continued support from multilateral development partners will help the authorities meet the country's external and fiscal financing needs." Institutional and economic profile: Tajikistan's economy relies on Russia for trade and labor remittances Preliminary official numbers indicated that Tajikistan's economy expanded by 8.1% over the first half of 2025. S&P said, "We expect growth to slow toward 5.5% in 2026-2028, driven by slower private sector consumption on the back of normalizing remittances. Industrial production and mining will likely be affected by softer metal prices. We assume gold prices of $2,900 per ounce (/oz) in 2025, $2,500/oz in 2026, and $2,100/oz in 2027. We also continue to note shortcomings in Tajikistan's disclosure of national accounts data." Sharp increases in wages of migrants and remittances have been supportive for economic growth in recent years. Financial inflows including remittances increased by 44% year on year in 2024 (to 48% of GDP) and another 63% year on year in the first quarter of 2025, supporting domestic demand for goods and services and propping up the domestic real estate market. Over 90% of these transfers are from countries in the Commonwealth of Independent States, mostly Russia. S&P expects this growth to decelerate due to likely slower increase of nominal wages in Russia in 2025 and a weaker Russian ruble exchange rate. Expanding electricity production is a potential source of growth and exports beyond our forecast horizon through 2028. Tajikistan started construction of the Rogun HPP in 2016, disbursing well over $3 billion since then to finance the project's first two of the six turbines (the third turbine is expected to be completed in 2025). Upon its completion, planned for 2035, the project is expected to increase Tajikistan's existing power generation capacity by more than 50%, resolving electricity shortage issues and exporting about 60% of its output to Central Asia. However, it remains a costly project crowding out other domestic capital expenditure of the government. The remaining cost to complete the Rogun HPP by 2035 is estimated at $6.4 billion. Tajikistan's government has negotiated a financing package with a consortium of multilateral and bilateral partners to cover about 50% of this cost, with the other half expected to come from the government's budget and the project's revenue. The provisional external funding envelope includes $1.5 billion in nonconcessional loans, $850 million in grant funding, and $550 million in concessional loans. S&P understands that at least a portion of this grant funding is contingent on Tajikistan's status as a "least-developed" country, a status likely to be revised in 2026. Tajikistan continues to maintain a broad policy of international neutrality. Relations with Russia remain important, both commercially and militarily, while those with China have strengthened in recent years following increased inflows of capital from China to Tajikistan's public infrastructure and mining projects. In 2025, Tajikistan and neighboring Kyrgyzstan achieved a major breakthrough in a longstanding border dispute, signing a border agreement and reopening travel between the two countries. In S&P's view, Tajikistan's highly centralized decision-making and untested power succession could undermine the predictability of policymaking. At the same time, it has provided a certain degree of political stability. President Emomali Rahmon has dominated Tajikistan's political landscape since the mid-1990s, when a long civil war ended and the economy started to recover from the pronounced recession that followed the dissolution of the Soviet Union in 1991. The president has ultimate decision-making power and is serving his fifth consecutive term after his reelection in 2020. The country's constitution sets no limit on the number of presidential terms, and the presidential administration controls strategic decisions and sets the policy agenda. Flexibility and performance profile: External and fiscal balance sheets have improved, despite longstanding structural vulnerabilities Tajikistan's balance of payments position remains susceptible to external shocks, reflecting the country's narrow export base, high dependence on imports, and strong reliance on workers' remittances. Although trade exposure to neighboring China, Kazakhstan, and Uzbekistan has increased since the start of the Russia-Ukraine war, Russia remains one of Tajikistan's largest trading partners, accounting for about one-quarter of its total trade (mostly fuel imports) and over 90% of labor remittances. That said, Tajikistan's external position has strengthened after posting five consecutive full-year current account surpluses since 2020. S&P said, "We project the current account will remain in surplus in 2025 and 2026, supported by resilient remittances and commodity exports. However, we expect a small deficit averaging about 1.0% of GDP in 2027-2028, in line with our assumption of normalizing remittance inflows. These inflows, combined with the central bank's recent monetization of gold purchased from local producers, helped shore-up foreign currency reserves to a record high $4.6 billion at the end of March 2025 (covering 7.4 months of imports of goods and services). We note that gold exports, while low in recent years, may need to be rerouted in light of recent uncertainties on U.S. tariffs on Switzerland, where the majority of Tajikistan's gold is smelted." S&P said, "In our view, Tajikistan continues to adhere to fiscal discipline. Strong growth in corporate, property, and nonincome tax revenue, supported by digitalization initiatives, expansion in industry and construction, and the scale back of tax incentives introduced under the 2021 Tax Code allowed the government to keep fiscal deficits at 1.0%-1.2% of GDP in 2023-2024. On the expenditure side, a one-time increase in grants supported higher capital outlays. Overall, we project Tajikistan's fiscal deficit at 1.2% of GDP in 2025, below the IMF program target of 2.5% of GDP, although we don't rule out additional off-balance-sheet, ad-hoc expenses related to state-owned enterprises (SOEs). "We project the general government deficit will gradually widen to a moderate 2.0%-2.5% of GDP over 2026-2028. In our forecasts, we assume a decline in mining-related revenue and continued budgeted capital expenditure for Rogun HPP of about 2%-3% of GDP annually." A high proportion of central government debt--about 90% of total debt--is denominated in foreign currency, exposing the government's balance sheet to exchange rate volatility risks. Because of strong GDP growth, contained fiscal deficits, and currency appreciation, net general government debt declined to about 20% of GDP in 2024, from about 35% in 2021. S&P forecasts a modest rise in the net debt-to-GDP ratio to a still moderate 26% by 2028, reflecting our projection of a gradual depreciation of the Tajikistani somoni and additional external debt accumulation for Rogun HPP. Tajikistan's $500 million 10-year Eurobond maturing in 2027, issued to fund the first two turbines of the Rogun HPP, started amortizing in 2025. Principal payments of $83 million (0.8% of GDP) are being made in six equal semiannual installments commenced March 2025 and ending September 2027. Annual interest payments on the bond account for a modest $35.6 million (0.3% of GDP) based on the bond's interest rate of 7.125%. S&P said, "Our assessment of Tajikistan's public finances reflects material contingent liabilities from SOEs. In our view, high debt at loss-making SOEs--especially in the energy sector--represents sizable fiscal risks for the government. We understand some SOEs' weak financial position requires government intervention to service their debt. Based on official numbers, we broadly estimate SOEs' liabilities, including loans, penalties, and arrears, at about 32% of GDP as of April 1, 2025, of which the majority is due by the national power company Barqi Tojik. Separately, the government continues to guarantee external loans for enterprises such as Barqi Tojik and Khujand Water Supply (amounting to $135 million; 1.0% of GDP), which we include in our calculation of general government debt." The government, however, aims to enhance governance and transparency of the SOE sector through the publication of a statement of fiscal risks and creation of a single public depositary for their financial reports. Barqi Tojik's structural earnings deficit stems from selling electricity below cost-recovery levels, contributing to significant arrears to private-sector creditors and suppliers (about 7% of GDP at year-end 2024). To address this issue, the government, in collaboration with the World Bank, committed to Barqi Tojik's financial recovery over 2022-2031. The plan aims to raise average domestic power tariffs to full cost-recovery levels by 2027, while reducing the company's technical and commercial losses. To this end, the government raised electricity prices for residential and industrial consumers by 16% in 2024 and hiked prices by 15% again in April 2025. S&P said, "In our view, Tajikistan's monetary policy effectiveness remains limited due to the country's shallow capital markets, small banking system, and high reliance on cash, which comprises three-quarters of the total money supply. Average inflation remained flat at 3.6% in 2025, compared with 2024, below that of regional peers and the lower range of the National Bank of Tajikistan's (NBT's) target range of 5% plus or minus two percentage points. We expect headline inflation to gradually increase toward the NBT's target, supported by gradual relaxation of monetary policy, a weakening exchange rate, and strong domestic consumption. In response to subdued price growth, the NBT lowered its policy rate to 7.75% in August 2025, its third cut in 2025. "The NBT has increased banking system oversight and tightened underwriting standards in recent years. However, we think the financial sector still faces high credit risk due to banks' lending and underwriting standards, low household wealth, and high credit concentration. Nonperforming loans declined to 7.0% of total loans as of March 31, 2025, from a peak of 46.8% at year-end 2016, but they remain elevated due to banks' exposure to the relatively loss-making SOEs. Dollarization has been reducing, with foreign-currency-denominated deposits and loans accounting for 39.5% and 26.4%, respectively, of total deposits and loans as of March 31, 2025." In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Rating Component Scores above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. Ratings list Ratings Affirmed Tajikistan Sovereign Credit Rating B/Stable/B Transfer & Convertibility Assessment Local Currency B Senior Unsecured B =========== T U R K E Y =========== FLO MAGAZACILIK: Moody's Withdraws 'B2' Corporate Family Rating --------------------------------------------------------------- Moody's Ratings has withdrawn the B2 corporate family rating, B2-PD probability of default rating, and B2 senior unsecured rating of FLO Magazacilik ve Pazarlama A.S. (FLO). Prior to the withdrawal, the outlook was stable. RATINGS RATIONALE Moody's have decided to withdraw the ratings because FLO's proposed transaction ultimately did not close. Established in 2001, FLO Magazacilik ve Pazarlama A.S. is an Istanbul-based Turkish retailer that designs, produces and sells footwear, sportswear, and accessories. The company has a business model that combines its own, exclusively licensed, private label, and third party brands. =========================== U N I T E D K I N G D O M =========================== CAISTER FINANCE: S&P Assigns B- (sf) Rating on Class F Notes ------------------------------------------------------------ S&P Global Ratings has assigned its credit ratings to Caister Finance DAC's class A1, A2, B, C, D, E, and F notes and class A loan, B loan, C loan, and D loan. The issuer also issued unrated class R notes at closing. This is a CMBS transaction backed by a senior loan secured on a portfolio of 40 properties, which include 39 U.K. holiday parks operated by the Haven Group and one head office of the Haven Group. Haven is the U.K.'s largest holiday park operator based on the number of pitches. On the closing date, the issuer advanced a GBP1.5428 billion senior facility A2 loan to Bard Bidco Ltd., the borrower, pursuant to the facilities agreement. Certain other lenders also advanced to the borrower a GBP974.4 million senior facility A1 loan. A senior capex facility up to GBP338.7 million may be advanced after the closing date. The total senior loan (A1, A2, and capex facility) is GBP2.86 billion. The issuer advanced a GBP81.2 million facility R loan to the borrower, which ranks junior to the senior loan. The issuer also drew down the class A to D tranched loan notes from their respective lenders. After the closing date, the issuer may issue additional notes or tranched loan notes subject to certain conditions being met. These include obtaining a rating agency confirmation that such additional issuance will not result in a downgrade or withdrawal of the current ratings on the debt. The senior loan provides for cash trap mechanisms if the loan-to-value (LTV) ratio is greater than 74.5% or if the debt yield is less than 8.3% before year three of the loan and 9.5% from year three onward. The senior loan has an initial term of two years with four one-year extension options available, subject to the satisfaction of certain conditions. There is no scheduled amortization during the loan term. The portfolio's market value as of Dec. 31, 2024, is GBP3.87 billion, which equates to an LTV ratio of 74% based on the total senior loan and 65% excluding the capex loan. S&P said, "Our ratings address the issuer's ability to meet timely payment of interest on the class A to D debt, ultimate payment of interest on the class E and F notes, and payment of principal not later than the legal final maturity in August 2036 on all classes of debt. For the class F notes, even though they do not pass our 'B' rating level stresses, we have assigned a 'B- (sf)' rating. We believe this tranche's ability to repay interest and principal does not rely on favorable economic and financial conditions." The legal final maturity date is initially August 2035. However, there is the option to extend the loan's term once by 12 months beyond the third extended loan maturity date in 2030 if there is approval by lenders holding 85% of the senior loan. Should the lenders choose to exercise this option, the legal final maturity date will be automatically extended to August 2036. Ratings Class Rating* Amount (mil. GBP) A1 Note AAA (sf) 374.90 A2 Note AAA (sf) 0.10 A Loan AAA (sf) 153.00 B Note AA (sf) 122.70 B Loan AA (sf) 41.10 C Note A- (sf) 80.60 C Loan A- (sf) 27.00 D Note BBB- (sf) 201.60 D Loan BBB- (sf) 67.60 E Note BB- (sf) 326.60 F Note B- (sf) 147.60 R Note NR 81.20 *S&P's ratings address timely payment of interest on the class A to D notes and loans, ultimate payment of interest on the class E and F notes, and payment of principal not later than the legal final maturity in August 2036 on all classes of rated debt. The legal final maturity date is initially in August 2035. However, there is the option to extend the term of the loan once by 12 months if approval is obtained by 85% of the lenders. Should the lenders choose to do so, the legal final maturity will also be extended by one year. The ratings therefore address repayment of principal by August 2036. NR--Not rated. DIGNITY FINANCE: S&P Raises Class B Notes Rating to 'CCC+ (sf)' --------------------------------------------------------------- S&P Global Ratings raised to 'BB+ (sf)' from 'B+ (sf)', and to 'CCC+ (sf)' from 'CC (sf)' its credit ratings on Dignity Finance PLC's class A and class B notes, respectively. Dignity (2002)'s financial year 2024 performance showed significant improvement in profitability thanks to the management's margin-enhancing measures offsetting a decline in volumes across the business as the U.K. saw a lower-than-expected death rate during the year. S&P now forecasts a more significant S&P Global Ratings-adjusted EBITDA improvement in 2025 and 2026 since its previous review, on the back of mildly recovering market share and ongoing operational efficiency efforts. This improvement together with the class A notes' partial repayments, has improved our DSCR analysis on the class A notes. On July 28, 2025, Dignity (2002) Ltd.'s tender offer was completed and GBP17.24 million of the class A notes were redeemed at 95.7% of their outstanding principal balance. S&P views this tender offer as opportunistic, considering the current rating on the class A notes, secondary market prices, prevailing interest rates, and the notes' maturity. Dignity Finance PLC is a corporate securitization of the U.K. operating business of the funeral service provider Dignity (2002) Ltd. (Dignity 2002 or the borrower). It originally closed in April 2003 and was last tapped in October 2014. The transaction features two classes of fixed-rate notes (A and B), the proceeds of which have been on-lent by the issuer to Dignity 2002 via issuer-borrower loans. The operating cash flows generated by Dignity 2002 are available to repay its borrowings from the issuer that, in turn, uses those proceeds to service the notes. Recent performance and forecast As of the latest Dignity (2002)'s investor report, for the 52-week period ended March 28, 2025, the securitization group operates 580 funeral locations (down from 646 as of March 29, 2024) and 44 crematoria (same level as of March 2024). Dignity (2002)'s 2024 performance showed effectiveness in the management's margin-enhancing initiatives. It reported S&P Global Ratings-adjusted EBITDA of GBP44.8 million with a margin of 13.8%, representing a 350 basis point improvement from 2023. This is despite a small decline in revenue driven by a lower-than-expected death rate in the U.K. affecting volumes across funeral and cremation services especially in the first half of 2024, and the company's decision to close 90 less profitable funeral homes, offset by price increases. S&P said, "We expect the company during 2025 to regain some of the market share lost during the reorganization of its operations (including ensuring a higher funeral home open rate) and as the management engineers its merchandising and marketing strategy to expand volume and topline. Given funeral homes' high fixed cost base, price increases which were fully implemented at the start of 2025 and any additional volumes driven by management initiatives, along with our assumption of some recovery in the U.K. death rate, would be highly margin-accretive, as wage and other input costs remain high. We also expect the high exceptional costs related to reorganization, redundancy, and legal fees in 2024 (including GBP16.1 million restructuring costs and GBP6.2 million onerous provision in covering funeral costs for customers from non-FCA-compliant funeral plan providers) to taper off in 2025 and 2026. "As a result, we forecast S&P Global Ratings-adjusted EBITDA margin to improve to about 17% in 2025 before stabilizing at about 19% in 2026, from 13.8% in 2024. This profitability level is still structurally lower than the historic level of about 26% before the regulatory impact began to register in 2021. "We expect ongoing inflationary costs, and a shift in customer preferences to lower-margin services including direct cremations, in a fragmented and regulated market, to continue to constrain Dignity's further upside to profitability and cash flow generation, after benefits from management's revenue- and margin-enhancing remedies annualize. In our base case, cash flow remains thin under annual financial debt interest, capital expenditure (capex) of about GBP20 million-GBP25 million, and lease payment of about GBP15 million, leaving little headroom for missteps in operations, volatility in the macroenvironment, or unexpected regulatory risk." Covenants The financial covenant 1.5x EBITDA DSCR has been satisfied based on the March 2025 investor report. S&P said, "The restricted payment condition (RPC) 1.85x EBITDA DSCR and 1.4x free cash flow DSCR have not been satisfied based on the same report, however given the July 2025 prepayments on the class A notes, we expect the RPC condition to be satisfied going forward. Once met, excess of cash within the whole business securitization structure can be released outside of the securitization group. In our analysis we only gave credit to core operating cash flows excluding any net proceeds from disposals." Business risk profile (BRP) S&P said, "We continue to assess the borrower's BRP as weak. Our weak BRP assessment reflects Dignity's single-country exposure to the U.K. demographic (primarily death rate) and macroeconomic trends, and regulatory risks. In our view, as U.K. consumers remain budget-conscious, the unfavorable trend since the pandemic of consumers shifting to cheaper, lower margin direct cremations or unattended funerals, coupled with the competitive and regulatory pressure on pricing in the fragmented market, will still constrain earnings growth potential for Dignity in the medium term. "We acknowledge that the company and its relatively new senior management team has been proactively implementing measures to recoup market share loss, following the closure of 90 less profitable funeral homes in 2024, during a year challenged by lower-than-expected death volumes and still high costs. That said, we believe the business has limited differentiation potential in the industry which continues to be crowded. The series of regulatory reforms from the Competition and Markets Authority (CMA) and the Financial Conduct Authority (FCA) since 2021 may have facilitated some consolidation which we think has more or less stabilized. Under our corporate securitization methodology, we use the BRP as a proxy for earnings and cash flow volatility. We assume that a weak BRP signifies a more volatile business." Summary of the class A notes prepayments S&P said, "Under the most recently accepted tender offer, GBP17,240,535.96 of the outstanding class A notes' balance was redeemed. Dignity Finance repurchased the selected notes at 95.7% of the selected class A notes' outstanding principal amount. The accrued, unpaid interest since the June 30, 2025, interest payment date (IPD) was also paid as part of the tender offer. We view such an offer as opportunistic. In our analysis, we considered the current 'BB+ (sf)' rating on the class A notes as a proxy for our assessment of whether the proposed cash tender offer is opportunistic or distressed. After considering the notes' legal final maturity date, current secondary market prices, and the discount to par proposed in the tender offer, we view the offer as opportunistic." This was a second below par tender offer accepted by Dignity Finance PLC's class A noteholders. Under the first accepted tender offer in July 2024, GBP67.024 million of the outstanding class A notes' balance was redeemed at 97% of the selected class A notes' outstanding principal amount. After the payments made on the June 2024 IPD (GBP15.6 million) and the completion of the two tender offers (GBP67.024 + GBP17.24 million), the class A notes redeemed by an additional GBP99.864 million between June 2024 and July 2025. The class A notes' balance currently stands at GBP39.4million. The proceeds to redeem the class A notes, in aggregate about GBP97.1 million, were funded from net available surplus funds from a funeral plan trust and unutilized net sale proceeds. Following the early class A notes' prepayments, the notes debt service per annum (principal plus interest) reduced to about GBP5 million this year from about GBP16.0 million last year. Rating Rationale Dignity Finance's primary sources of funds for principal and interest payments on the notes are the loans' interest and principal payments from the borrower and any amounts available under the GBP55 million tranched liquidity facility. S&P said, "Our ratings address the timely payment of interest and principal due on the notes. They are based primarily on our ongoing assessment of the borrowing group's underlying BRP, the integrity of the transaction's legal and tax structure, and the robustness of operating cash flows supported by structural enhancements." S&P said, "We applied our corporate securitization criteria as part of our rating analysis of the notes in this transaction. As part of our analysis, we assess whether the operating cash flows generated by the borrower are sufficient to make the payments required under the notes' loan agreements by using a DSCR analysis under a base-case and a downside scenario. Our view of the borrowing group's potential to generate cash flows is informed by our base-case operating cash flow projection and our assessment of its BRP, which we derive using our corporate methodology. "Low DSCRs in our base-case analysis for the class B notes results in our rating on this class reflecting the creditworthiness of the borrowing group. We consider these notes to be vulnerable and dependent upon favorable business, financial, and economic conditions to pay timely interest and ultimate principal." Counterparty risk S&P's ratings are not currently constrained by the ratings on any of the counterparties, including the liquidity facility, and bank account providers. Outlook S&P said, "We expect the business to focus on turning around the business and mildly expanding market share with the agility to accommodate shifting consumer preferences and ongoing improvement in efficiency of its operations, underpinning margin improvement in the next 12-18 months and growing the maintenance covenant headroom. We also expect the company to be able to rebuild organic cash flow generation that is sufficient to sustain operations and cover payment obligations." Downside scenario S&P said, "We could lower our rating on the class A notes if our minimum projected DSCRs fall below 1.5:1 in our base-case scenario or if it 1.30:1 in our downside scenario. This would most likely happen in the scenario of shortfall in the company's operating performance and cash flow generation that leads to deterioration in liquidity and heightened likelihood of payment default or distressed exchange, or in a scenario where liquidity facility is fully used." Upside scenario S&P said, "We could raise the rating on the class A notes if performance improves such that the minimum DCSR for these notes exceeds the mid-range of 1.5:1-3.5:1 in our base-case scenario. We could also raise the rating on the class B notes if our assessment of the borrower's overall creditworthiness improves, as the rating uplift is currently limited." ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2754. 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